After ending the previous session mostly higher but well off their best levels, stocks are likely to see another early advance on Thursday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.5 percent.
The markets are likely to benefit from a positive reaction to earnings news from Nvidia (NVDA), as the AI darling and market leader is jumping by 1.7 percent in pre-market trading.
The advance by Nvidia comes after the company reported better than expected fourth quarter results and provided upbeat revenue guidance for the current quarter.
Buying interest may be somewhat subdued, however, as concerns about President Donald Trump’s threatened tariffs continue to weigh on sentiment.
Traders are also digesting the latest batch of U.S. economic data, including a Labor Department report showing first-time claims for U.S. unemployment benefits climbed much more than expected in the week ended February 22nd.
The report said initial jobless claims rose to 242,000, an increase of 22,000 from the previous week’s revised level of 220,000.
Economists had expected initial jobless claims to inch up to 221,000 from the 219,000 originally reported for the previous month.
While the report could add to recent concerns about the economic outlook, the data may also generate renewed optimism about potential interest rate cuts.
A separate report released by the Commerce Department showed durable goods orders surged by much more than expected in January, although the growth was largely due to a spike in volatile orders for transportation equipment.
Stocks showed a strong move to the upside early in the session on Wednesday but gave back ground over the course of the trading day. The major averages pulled back well off their highs of the session, although the Nasdaq and the S&P 500 managed to close in positive territory.
After surging by as much as 1.3 percent, the tech-heavy Nasdaq ended the day up 48.88 points or 0.3 percent to 19,075.26. The S&P 500 eked out a more modest gain, inching up 0.81 points or less than a tenth of a percent to 5,956.06, while the narrower Dow bucked the uptrend and slid 188.04 points or 0.4 percent to 43,433.12.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan’s Nikkei 225 Index rose by 0.3 percent, while Hong Kong’s Hang Seng Index dipped by 0.3 percent.
Meanwhile, European stocks have moved mostly lower on the day. The German DAX Index is down by 0.8 percent and the French CAC 40 Index is down by 0.3 percent, although the U.K.’s FTSE 100 Index has bucked the downtrend and inched up by 0.2 percent.
In commodities trading, crude oil futures are climbing $0.71 to $69.33 a barrel after falling $0.31 to $68.62 a barrel on Wednesday. Meanwhile, after rising $11.80 to $2,930.60 an ounce in the previous session, gold futures are tumbling $31.90 to $2,898.70 an ounce.
On the currency front, the U.S. dollar is trading at 149.74 yen versus the 149.10 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0449 compared to yesterday’s $1.0485.
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U.S. Stocks May See Initial Strength On Upbeat Nvidia Earnings
2025-02-27 13:53:43
